STRATEGIC PARTNERS
January 27, 2002
HAMMONTON, N.J. -- William A. Mottin, the former president and CEO of Tri-State Armored Services, a now-bankrupt armored car carrier, has been arrested and charged with bank fraud and money laundering, according to a report in the Trenton (N.J.) Times.
He is being held without bail, after being arraigned in Trenton.
Mottin was part of a group that bought Executive Cash Service in 1997 and renamed Tri-State Armored Services, according to an affidavit filed by IRS special agent Ronald J. Gideon. Tri-State, which has offices in four Northeastern states, services and replenishes more than 3,000 ATMs.
Mottin allegedly removed $20,000 in cash from Tri-State's vault that was earmarked for ATM replenishment. The $20,000 was then deposited into the personal checking accounts of employees, who wrote checks that went into Tri-State's account so Mottin could make his payroll, according to Gideon's affidavit.
Authorities learned about the scam after they were contacted by Summit Bank officials whose audits had shown their customer account with Tri-State was at least $25,000 short.
Tri-State is no longer in business and filed for protection from creditors in U.S. Bankruptcy Court on March 2.
Mottin's case is separate from one against former Executive Cash Service CEO Barry Chesla. In that case, the FBI is investigating Chesla and his wife, Amy, for bank fraud, money laundering, income tax evasion and filing false tax returns. The U.S. Attorney's office in Pittsburgh has filed a forfeiture action to seize property owned by the Cheslas.
